Jakarta – Exploring the international LNG market, state gas company PT PGN Tbk as a subholding of Pertamina cooperates with PRISM Energy Internasional, a subsidiary of SK E&S, Co. Ltd. a South Korean LNG trading company. PGN and PRISM signed a Master Sales and Purchase Agreement (MSPA) for the sale and purchase of LNG at the 28th World Gas Conference, Daegu, South Korea, Tuesday (24/5).
The MSPA was signed by PGN’s Director of Strategy and Business Development, Heru Setiawan and CEO of PRISM Energy International, Chung Jaehak. The agreement was also a follow-up to the signing of the MOU between the two companies for cooperation in the development of LNG, hydrogen, and Carbon Capture Storage (CCS) witnessed by the Coordinating Minister for Economic Affairs of the Republic of Indonesia, Airlangga Hartarto, last February.
Setiawan said that the MSPA will open up international LNG trading opportunities for PGN. “We challenge ourselves not only to be present for domestic natural gas needs where we have reached 89% market share, but also to be able to get out of our comfort zone by entering the international market,” he said in a written release.
In addition to international LNG trading, this collaboration is also in line with SK Group’s vision and mission in the utilisation of natural gas in a transition period towards clean energy. Heru hopes that PGN and SK Group can complement each other in the development of new renewable energy including the development of LNG, hydrogen, and Carbon Capture Storage (CCS).
Energy policies and the clean energy transition are the main determinants of LNG demand in South Korea. At the end of 2020, South Korea also announced a target of net zero emissions by 2050. The share of LNG in the power generation mix by 2030 is up to 19%. The role of LNG in the power mix will continue to grow, with South Korea’s LNG demand forecast in 2030 reaching between 65-66 billion cubic metres (bcm), or around 50 million tonnes (Mt). (Hartatik)
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